Appropriations panel advances OMB budget after debate over Jamestown state hospital, funding changes

The Appropriations — Government Operations Division advanced House bill 10/15, the Office of Management and Budget (OMB) budget, after a session-long debate over funding for a proposed new state hospital in Jamestown and several line-item adjustments.

The committee voted to pass the bill as amended after adopting changes that increase guardianship grants by $1,000,000, reduce a $1,500,000 public-education contract for a pro‑life outreach campaign to $500,000, and add language authorizing OMB to transfer up to about $242,000,000 from the social services fund to the human services finance fund. Chairman Wannsee carried the budget out of the committee following the vote.

Why it matters: The Jamestown state hospital portion of the budget drew the most attention because it would commit hundreds of millions of dollars to construction and place project management with OMB. Committee members said the decision affects long-term mental‑health capacity, statewide service strategy and potential legal exposure tied to federal disability‑rights law.

Tim Mathern, a senator who asked to speak before the committee, urged members to reconsider the construction plan and to consider alternatives such as deferred maintenance and local investments. “Building an institution in Jamestown is old medicine,” Mathern said, adding that modern practice emphasizes acute care, rapid treatment and step‑down community services. Mathern also warned of legal risks, citing “Supreme Court decisions regarding Olmstead and the … disability act” as a consideration for moving away from large institutional care.

Mathern urged either removing the Jamestown construction section from 10/15 or delaying construction until the next biennium so new executive leadership can review the plan. He said the state already is investing in local capacity in other bills: “We’re putting money into the hospital in Bismarck, we’re putting money into the hospital in Grand Forks, and we are putting money into 4 local certified community behavioral health centers.”

Other legislators questioned the assumptions behind a new state hospital. Senator Burkhart said proponents emphasize the hospital would handle “extreme” or forensic patients. Mathern responded that the existing Jamestown campus has unused capacity but lacks staff, and that an estimated $25,000,000 in deferred maintenance plus a modest modernization could address current needs. “You can’t get that level of staff to move to Jamestown,” Mathern said, citing recruitment challenges and a $5,000,000 staffing appropriation elsewhere intended to help staffing in regional facilities.

Multiple members described the proposed construction price tag as “sticker shock.” Mathern and other senators gave approximate figures discussed in the meeting: a $300,000,000+ construction estimate referenced repeatedly by members; Mathern suggested a $96,000,000 alternative scope if a new building is limited to forensic and high‑need units; and he proposed about $25,000,000 to remediate deferred maintenance at the Lehi Building (the 1986 structure in Jamestown) and to update it for modern care.

OMB staff described the bill language as giving OMB managerial control of construction management consultants and overall responsibility to build the project if the committee and later the full legislature approve it. “We would have managerial control over the project and the construction management consultants utilized,” Joe Morissette of OMB told the committee, adding that OMB expects to work with Department of Human Services staff on a project team.

The committee also discussed a transfer provision that would move oil‑related receipts from the social services fund into a DHHS special fund. Morissette explained the transfer authority: once certain oil buckets fill, OMB may transfer proceeds into the human services finance fund and DHHS then has authority to spend the money. Because the bill’s spending authority in the DHHS budget does not exactly match the transfer authority, staff recommended language saying the transfer may be “up to” a stated amount to reconcile differences during conference committee.

Other appropriations and amendment details debated and adopted by the committee included: - A $40,000,000 deferred‑maintenance fund established in the bill to address state building repairs. The committee discussed receiving a projects handout listing proposed deferred‑maintenance work. - A $1,000,000 retirement‑incentive pool clarification and a $3,000,000 deficiency appropriation related to a new and vacant FTE pool (staffing funding reconciliation). - Funding or restored language for Prairie Public Broadcasting local programming (amount to be determined in later steps). - Adjustments for a guardianship pass‑through grant: the committee discussed a request originally described as $9.1 million and said current funding stood at $7.1 million; members approved adding $1,000,000 to guardianship funding in the amendment package to address backlogs the presenters described.

Committee members agreed the bill will go to the full Appropriations Committee and then into conference committee, where some numbers and language may change further. Chairman Wannsee said OMB will likely carry the budget package into conference.

Votes at a glance - Adopt amendment package (version 02/2006 with additions: +$1,000,000 guardianship, -$1,000,000 net to pro‑life education so the pro‑life item becomes $500,000; adjust transfer language): Motion by Senator Dwyer; second by Senator Herbley. Committee recorded vote on the amendment package as Aye: Senator Sickler, Senator Erberly, Senator Dwyer, Chairman Wannsee; No: Senator Burkhart. Outcome: amendment adopted (4–1). - Final recommendation on HB 10/15 (do pass as amended): Motion carried; recorded roll call Aye: Senator Sickler, Senator Erberly, Senator Dwyer, Senator Burkhart, Chairman Wannsee. Outcome: do pass as amended (5–0).

The committee chair said the measure will move to conference committee for final negotiation, and several senators said they expect further discussion on the Jamestown facility and on funding allocations during that process.

Sources: Committee meeting transcript; on‑record testimony and staff remarks by Senator Tim Mathern, Joe Morissette (OMB), and Bridget/Bridgette (presenter on the education contract).